Teachers' Pension CPI increase April 2012

whitesatin

Normally, pensions increase each year by the CPI (used to be RPI). I vaguely remember reading somewhere that the government can decide not to do that necessarily but I can't find the information anywhere. I think the state pension increase by that amount is going ahead (I don't yet qualify for that) but wondered if it is definite that I will receive the increase on my TP in April. Does anyone know for sure?
Thanks.

hugheskevi

I vaguely remember reading somewhere that the government can decide not to do that necessarily but I can't find the information anywhere.

The Government has to uprate them in line with the change in the general level of prices. The Government can choose what it believes to be the best measure of the change in prices, which formerly it viewed as RPI, and now views as CPI. That view could change in the future.

but wondered if it is definite that I will receive the increase on my TP in April. Does anyone know for sure?

Yes, public service pensions are part of the same uprating order as applies to State Second Pension, although unions were given the right to go to court of appeal following a recent judicial ruling around the increase, so if they were to appeal and win there would be uncertainty.

stepahno

THANKS, HUGHESKEVI,
what might that be in percentage, do you know? ( some say 5% ).

hugheskevi

September CPI was 5.2%.

RichandJ

hugheskevi wrote: »

September CPI was 5.2%.

But, as I mentioned on the other thread asking this question today, increases may be capped (on any excess over GMP anyway) at 5%.

If there's GMP involved it will receive at a minimum the statutory increases of zero on Pre 6/4/88 & max 3% on the Post 88.

datostar

On Tuesday, 7th December, 2011, Steve Webb MP, Minister of State for Work and Pensions, made a statement to Parliament confirming that it was the Government's intention to increase the second state pension and thus as a consequence public sector pensions, where appropriate, by the September 2011 Consumer Price Index figure of 5.2%.

RichandJ

I repeat, TP increases appear to be capped at 5%. Last time the Sept index (RPI as it was back then) was > 5% was Sept 08 at 5.2%. Increase granted by TP Scheme in Apr 09 was 5% dead.

Do not expect more than 5%.

Both these facts can easily be found. Google is your friend.

hugheskevi

I repeat, TP increases appear to be capped at 5%. Last time the Sept index (RPI as it was back then) was > 5% was Sept 08 at 5.2%. Increase granted by TP Scheme in Apr 09 was 5% dead.

Looking at historic RPI on National Statistics as well as the Uprating Order 2009, September 2008 RPI is recorded as 5.0% - are you sure you are looking at the correct RPI series?

Every public service pension scheme I have seen links increases to the uprating used for State Second Pension with no caps in place (which is different to private sector DB schemes, where caps are commonplace). Looking through the scheme descriptions for teacher's pensions I can find no mention of any cap. That applies even in descriptions which go into detail about how GMP increases are applied, and at that level of detail I would expect to mention of a cap if one existed. Also, in Occupational Pension Scheme Survey, it is quoted "In the public sector, the practice at the time of this survey [2010] was to increase pensions in payment in line with RPI, with no cap on the increase."

Agree that any pension including pre-97 accrual will be a bit different due to some or all GMP increases being paid via State Pension rather than scheme pension.

RichandJ

I stand corrected & will shut up. Lucky beggars.

Will check 2008 Sep RPI tomorrow though.

xylophone

Northern Ireland TPS news sheet for last Jan might be of interest.
http://www.atl.org.uk/Images/PF10%20-%202011.pdf